Eros (EROS) Mentioned Cautiously at

August 12, 2016 2:42 PM EDT
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Eros (NYSE: EROS) was mentioned cautiously Friday in a post at The report raised concerns about the company's Free Cash Flow and statements that were meant to appease investors.

"EROS justified their cash flow positive status by proclaiming that this was a result of an increase in their operating cash flows. However, EROS was only able to do this by factoring $39.03 million dollars of accounts receivables, which went into their operating cash flow ... if EROS had not factored their receivables, they would have reported a negative free cash flow of $16.2 million," said Asensio.

"Upon analysis, it seems that the same highlights that were deemed attractive to investors turned out to be a confirmation of EROS’s worst-case scenario," the short seller added.

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